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Wednesday, March 30, 2016

Inventory: Fixed order quantity Total Cost

 March 30, 2016     No comments   

Inventory: Fixed order quantity Total Cost


Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC) function?

Answer

a. Annual holding cost, annual ordering cost, unit cost

b. Annual holding cost, annual ordering cost, annual purchasing cost

c. Annual lead time cost, annual holding cost, annual purchasing cost

d. Annual purchasing cost, annual ordering cost, fixed cost

e. Annual unit cost, annual set up cost, annual purchasing cost

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